Which of the Following Is a Condition for Efficiency in the Output

question 86

Multiple Choice

Which of the following is a condition for efficiency in the output market?

• A) MRT = MP_L/MP_K
• B) The marginal rate of substitution is the same for all customers.
• C) The marginal rate of technical substitution must be the same for all producers.
• D) The marginal rate of transformation must equal the marginal rate of substitution.

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